The time to rebuild Ukraine is now
editor
Photo: Boštjan Podlogar/STA
“The private sector possesses the power to mobilise much-needed investments,” emphasised the Slovenian Minister of Economy Matjaž Han, setting a tone at the onset of the event Rebuild Ukraine: Opportunities for Slovenian Business. Held at the Hotel Kompas in Kranjska Gora on March 22, the conference was organised by SPIRIT Slovenia, the Embassy of Ukraine in Slovenia, and the Institute for Strategic Solutions (ISR), with the aim to encourage joint efforts towards rebuilding Ukraine whih has been devstated by the conflict with Russia.
Echoing the minister’s sentiment, Tomaž Mencin, coordinator for Ukraine’s reconstruction at Slovenia’s Ministry of Foreign Affairs, added: “The idea of rebuilding and reconstructing Ukraine is based on stimulating the private sector.” The urgency to get involved was underscored by speakers at the event, as Anatolii Komirnyi, Ukraine’s Deputy Minister of Infrastructure, revealed that nearly the country’s critical infrastructure has been destroyed by the war.
Despite the onging conflict, Roland Žel, Director of the Directorate for Defence Policy at the Slovenian Ministry of Defence, stressed the urgency of starting reconstruction efforts promptly. “We must start reconstruction now, as this is important for the European economy and therefore for the Slovenian economy,” he stated.
Gearing up for reconstruction efforts
Mitigating the risks of doing buisness in a war-torn country, Gašper Jež, an expert in direct financing at SID Bank, assured participants of support for Slovenian companies in insurance, risk management, and international transactions. “Slovenian companies are well-positioned to secure a majority share of contracts if they seize the opportunity to assist in the reconstruction,” Jež emphasized.
The European Union will also contribute substantially to Ukraine’s reconstruction, assured Nataša Goršek Mencin, Deputy Head of the Representation of the European Commission in Slovenia, presenting a plan worth EUR 50 billion for the period 2024-2027.
Insights from the ground
At a roundtable discussion, moderated by Tine Kračun, director of ISR, participants from the Slovenian companies that are already operating in Ukraine, explored the prospects of collaboration and investment in Ukraine’s reconstruction efforts.
Representatives from Nazovni Tech, a non-governmental organization working closely with Ukraine’s Ministry of Foreign Affairs, explained their mission to integrate scientific expertise and public initiatives for Ukraine’s recovery. “We are a non-governmental organization, a platform for recovery. Our mission is incorporating scientific expertise and public advancements, public initiatives and coordinating government action to explore more social science in recovery of Ukraine,” they stated. Emphasizing their role in project assessment, they highlighted their commitment to facilitating the adaptation and implementation of relevant techniques and methods.
“It’s a really huge country with great perspective in green and technological developments. So, stay committed, show support, and just try get over the risks with a focus on long-term collaboration.”
Riko, engineering company with a 20-year presence in Ukraine, shared their experiences amidst the conflict. Despite challenges, including the loss of a colleague, the company remains committed to Ukraine’s development. They have shifted their focus to environmental and infrastructure projects, aligning with Ukraine’s modernisation goals. “It’s a really huge country with great perspective in green and technological development. So, stay committed, show support, and just try get over the risks with a focus on long-term collaboration,” Katarina Kumelj, project manager at Riko, affirmed.
Duol, a global producer of fast-directed structure support, emphasized the urgency of addressing immediate needs in the country. “For us at the moment top priority is the logistic support to the Ukraine in terms of the temporary accommodation facilities,” emphasized Dušan Olaj, the company’s director and owner. Stressing the importance of staying updated to monitor current situations effectively, he highlighted the need for adaptability in navigating the evolving landscape.
Kontron’s focus is providing support for critical infrastructure, particularly in terms of telecommunications, transportation, railways, and energy. The company, a member of the Austrian group Kontron AG, provides information and communication solutions and has been present in Ukraine since 1995. Robert Kuzmič, director of Kontron, emphasized the significance of revitalising projects but advised businesses to be prepared for challenges in the Ukrainian market. “My message to those who want to do business, don’t expect a 100% advance payment for your product in the Ukraine market. So try to ensure finance and your job is granted, don’t wait too long, and be ready to take the risks for any operation.«
Path to the EU
editor
Andraž Tavčar
“Enlargement is no longer a dream,” said the European Council chief at the Bled Strategic Forum last year. “I believe we must be ready — on both sides — by 2030 to enlarge.”
The European Commission‘s subsequent enlargement package for the year, unveiled last November, acknowledged the geopolitical imperatives driving the need for new EU members. This was largely driven by the war in Ukraine, escalating tensions in the Middle East, and the potential of a new conflict between Armenia and Azerbaijan over the Lachin corridor. In response, the EU is looking towards the Western Balkans to secure its periphery, an area where it still retains some operational leverage. That doesn’t come without its own set of challenges, however. The EU is forced to contend with diminishing support in the region, largely attributed to the drawn-out accession process and prevailing economic malaise.
These circumstances put the EU under considerable pressure to hasten its plans. Measures that kicked off with the commencement of admission talks with Albania and North Macedonia and granting candidate status to Bosnia and Herzegovina in 2022 have now shifted towards a concerted thrust to expand into the region by 2030.
Diplomatic tiptoeing
For two decades, the prolonged Kosovo-Serbia conflict has presented numerous attempts for resolution. Since Kosovo’s self-proclaimed independence in 2008, which Serbia didn’t acknowledge, the European Union has been playing referee as of 2010, offering the sweetener of membership as a peacekeeping incentive. The Brussels Agreement, an impactful deal officiated by the EU in 2013, was a significant stride towards improving Serbia-Kosovo relations, with a focus on governance and collaboration matters.
However, according to Michael Emerson, a senior research fellow at the Centre for European Policy Studies (CEPS) specialising in EU enlargement, both countries currently stand at a crossroads. “Serbia and Kosovo rule themselves out for any realistic prospects of accession until and unless they have peacefully normalised their relations,” he states. “The Franco-German paper earlier last year for reconciling the two was a promising opening, and should still have a future, even though the two parties have descended to more hostile relations for the time being.”
Cascading calamity
The Franco-German proposal aims to facilitate the normalisation of relations between Belgrade and Pristina, particularly in response to the destabilising effects of Russia’s invasion of Ukraine on the Western Balkan region. However, the progress of these diplomatic efforts suffered a setback after a serious incident last September. Gunmen opened fire on Kosovo police, allegedly involving Milan Radoičić, the former vice-president of the Serbian List party, leading to a temporary halt in negotiations.
This is further compounded by what Dr. Ana Bojinović Fenko, Chair of International Relations at the Faculty of Social Sciences, University of Ljubljana, also sees as a discernible lack of commitment from the political leadership of both countries to pursue normalisation. “On the contrary, political elites in both states are actively exacerbating tensions, shaping national identities in a manner that is not only exclusionary but, in some instances, overtly antagonistic towards each other.”
“The Franco-German paper earlier last year for reconciling the two was a promising opening, and should still have a future, even though the two parties have descended to more hostile relations for the time being.”
Dr. Bojinović Fenko points out that, considering the relatively underdeveloped state of civil society in both Serbia and Kosovo, the responsibility largely rests with external actors — namely Germany and France — to play a more influential role in bringing the interests of these two states closer together. Despite the positive intentions underlying the efforts to initiate dialogue, she warns that the impact of such initiatives is limited if they are merely bilateral in nature. Advocating for a broader approach, she suggests that “cooperation between these countries must be fostered through the lens of wider European initiatives, engaging various sectors, including civil service, civil society, and economic stakeholders.”
In her view, this is the only way the European Union can reasonably anticipate a transformation in the internal political climate of Serbia and Kosovo in the coming seven to ten years. She argues that a fundamental shift in mindset is required: moving away from entrenched hostilities to fostering relations akin to those of amicable neighbours.
“Through this, civil society has the opportunity to fortify its position relative to the political elite to the degree that it could challenge the prevailing ethno-political narrative that defines their current national identity”, she argues. “This would pave the way for the election of a political class that fosters peaceful coexistence and constructive cooperation within the framework of European integration, not only with the broader European community but particularly with neighbouring nations.”
“Cooperation between these countries must be fostered through the lens of wider European initiatives, engaging various sectors, including civil service, civil society, and economic stakeholders.”
Bosnia's unique case
When it comes to Bosnia and Herzegovina, Emerson described it as “still in a state of dysfunctionality.” The country that formed after the signing of the Dayton Accords in 1995 has grown increasingly so, both due to its elaborate and overburdened bureaucracy and the uneven balance between the Federation and Republika Srpska and its secessionist aspirations. “Dodik’s Serb Republic is a polity that has all that the EU would not want to import into its midst,“ notes Emerson.
Republika Srpska’s refusal to align with EU sanctions against Russia and Belarus, and the conferment of the order of Republika Srpska to Russian President Putin in January 2023 add to the difficulty of absorbing an entity whose relations with Russia are in flagrant opposition to the EU’s foreign policy.

And the rest
“This leaves Montenegro, North Macedonia and Albania as more straightforward case,” Emerson suggests. “For them reforms of the enlargement methodology are crucial to dynamise the process of opening and closing chapters and assuring the requisite reforms. The least that could be done would be to switch Council decision making on chapters and clusters a matter for qualified majority voting, for which there is widespread support.”
The aim of this reform is clear: it seeks to reduce the number of states that can veto proposals. However, its implementation is challenging – achieving unanimity is a difficult task with the EU’s current 27 member states.
“The Enlargement Package is silent on this issue but does innovate with its interesting proposal of a ‘Growth Plan’, which would offer additional funding conditional on selected steps to align on important elements of the single market and the digital sector,“ Emerson notes. This plan, encompassing a six-billion-euro Reform and Growth Facility for the Western Balkans (2024-27), aims to provide pre-accession benefits, foster economic growth and socio-economic convergence, with payments conditional on the fulfilment of agreed upon reforms.
“Dodik’s Serb Republic is a polity that has all that the EU would not want to import into its midst.“
Balancing enlargement and internal reform
The Western Balkan states, as candidates for EU membership, have consistently faced considerable skepticism from some EU members, particularly regarding the inclusion of smaller and politically less stable countries. Prior to the Russian invasion of Ukraine, this cautious stance was notably echoed by French President Emmanuel Macron. He repeatedly emphasized the necessity of internal EU reform as a prerequisite for considering further enlargement.
Dr. Bojinović Fenko observes the two need not be mutually exclusive. “France has historically viewed these as separate processes, fostering a belief that one must either focus solely on enlargement or on deepening the EU’s integration.” She goes on to explain that, in the past, France has “prioritised the latter, as it allowed it and like-minded member states to project substantial influence within the EU, aligning the Union’s global stance with its national interests.” However, the addition of new member states introduces a greater degree of complexity in this equation, increasingly casting France in the role of gatekeeping enlargement.
“The least that could be done would be to switch Council decision making on chapters and clusters a matter for qualified majority voting, for which there is widespread support.”
“The legitimacy of France’s interests within the EU should be recognised,” she adds, “given that since the founding of the EU, Germany has experienced a population increase, leading to increased voting power in the Council of the EU and a greater number of allegiances with like-minded member states.” Additionally, the prospective enlargement into the Western Balkans is likely to further tilt the balance in Germany’s favor, therefore “France is determined on establishing institutional arrangements that would safeguard its influence in the Union.”
Despite these challenges, there have been efforts to agree on a path of mutual progress. Emerson references a report released last year by a Franco-German working group, titled ‘Sailing on High Seas – Reforming and Enlarging the EU for the 21st Century’ which addresses the critical question of EU reform. “The proposed deepening would involve reducing veto powers in favor of qualified majority voting, potentially implemented during the transition period of Staged Accession.” Yet, Emerson concedes that unanimity on this remains elusive.
A shift towards qualified majority voting is likely to unfold incrementally, starting with certain foreign policy decisions before expanding to other areas. In the interim, the EU might continue to allow certain exemptions for member states where unanimity is required. To make qualified majority voting more acceptable to member states, the Franco-German report proposes a “sovereignty safety net” to give countries a backstop on issues where a vital national interest is at stake, as well as giving more voting weight to smaller countries in the Council.
Absent substantial reforms within the European Union and the Western Balkan countries, President Michel’s hopeful outlook could, echoing Emerson, be deemed merely “superficial.” Achieving the ambitious objective of integrating the Western Balkan states into the EU by 2030 seems improbable without significant systemic transformations on both sides.
Dr. Bojinović Fenko offers an alternative perspective. She notes the EU has historically demonstrated its ability to integrate a large number of new members prior to undertaking institutional reforms, evidenced by the end of the Cold War and the resulting emergence of new nations in Europe. “The initial accession processes began in the early 1990s. However, the necessary institutional adjustments to accommodate an enlarged EU framework were only formalised with the ratification of the Treaty of Nice in 2003, a point at which the accession negotiations with all ten Central and Eastern European countries had already concluded.”
Reflecting on the two decades since the promise of EU membership was first made to the Western Balkans, Dr. Bojinović Fenko says “it’s high time for the European Union to move beyond the binary choice of whether to enlarge or deepen. Instead, it should concentrate its efforts vigorously on enlargement, while, at the same time, strategise and implement essential reforms to its internal institutional framework.”
The European Union has charted a course towards expansion, yet the details of how to get there remain elusive. Current discussions about enlargement are as positive as they’ve ever been, with no shortage of enthusiasm among EU policymakers. But, as much as the Western Balkans aspire towards it, the ability of the EU to reach the 2030 enlargement date ultimately presents a litmus test for the bloc as a whole and would demonstrate that Western policies are effective. With the pole of the world order shifting towards Asia, the EU is entering an era of giants, and it will have to prove whether it can adapt and stand as tall as the rest of them.
A view from the Balkan youth: Should Western Balkan countries join the EU?
Ivana Blažin, 22
3rd year student of engineering management from Serbia
“Joining the EU would in my opinion be beneficial for the citizens. But on the other hand, they might not be able to withstand so much change in a short amount of time. Becoming a European Union Member brings a lot of benefits, but I don’t think Serbia is ready for it or willing to change too much.”
Natali Buli, 18
High school student from Albania
“In my opinion, Albania needs a push to show more of itself; we are often judged, but people do not know us. We want to put forward how beautiful our country is. We all have different types of tourism, but apart from that, we have so much more to offer. Joining the EU could help us embrace all of that, all our differences and those things that make us unique. It would be a great push and a great motivation for young people to work on improving our country even more.”
Ilma Šahinović, 25
First year student of Masters of International Relations, from Bosnia and Herzegovina
“I believe there are upsides and downsides to this. Personally, I am more in favour of Bosnia and Herzegovina joining the EU, as I believe it will open more doors for young people here and potentially finally slow down the constant rise in brain drain. This could essentially strengthen our bonds with the rest of the Europe and increase our living standard.”
Matic Hrabar, 19
Student of biotechnology from Slovenia
“For EU to expand, reforms and new legislations need to be introduced within the existing institutional frameworks. One example is the veto rule, that should be changed when EU is preparing for expansion. The past few years, we have seen many examples of countries backing each other up, with some countries, even in cases of human rights violations.
Changes also need to happen in prospective Member States, as they did in Slovenia, before we joined EU. This is where we, Slovenia, and the EU can support them. Financing stronger democracies, independent judiciary etc. Only then, when both the EU and prospective Member States introduce the needed reforms, could we step into this newly formed relationship in a way that is truly beneficial for all. Which it should be. For Slovenia, joining the EU was very beneficial so there is no doubt that the same could happen for the other countries of the Western Balkans.”
Prepared by Tibor Remškar.
THE ADRIATIC
This article was originally published in The Adriatic Journal: Strategic Foresight 2024
If you want a copy, please contact us at info@isr.si.
The Water is Rising
editor
Andraž Tavčar
JOURNALIST AT THE ADRIATIC
The Institute for Strategic Solutions, Slovenia’s leading private think-tank, convened its annual corporate strategy event in Skopje, in collaboration with the Slovenian Business Development Agency and the Economic Chamber of North Macedonia. In his opening remarks, Tine Kračun, the institute’s chief executive, emphasized the imperative for reinforced cooperation between the EU and Western Balkan economies to enhance the region’s prosperity and stability.
Following Slovenia’s severe flash floods last year and rising tensions from the Banjska attacks in Northern Kosovo, the conference provided a timely platform to discuss enhancing economic ties with the European Union, whose capacity to integrate new economies amid current challenges—be they environmental or geopolitical—presents a litmus test for the bloc’s objective of enlarging to Western Balkan countries by 2030.
Embracing clean energy
Themed by its title, The water is rising: Running businesses during times of crises, the roundtable discussion brought climate change and geopolitics to the forefront, engaging business leaders in a dialogue on how Macedonian companies can better prepare for and mitigate both of their increasingly costly impacts.
“Clearly, society has the tools to either lessen or completely eliminate climate change.” Vojdan Jordanov, chief executive of Triglav Insurance in Skopje, described a common reaction to the notion. “At first, you’re hit with this wave of disbelief or denial. Then, as it starts to sink in, you might find yourself getting really angry. But eventually, you come to terms with what’s happening, accepting the new reality, at which point you’re ready to roll up your sleeves and start coming up with solutions.”
In North Macedonia, efforts to embrace renewable energy frequently encounter obstacles due to complex and non-transparent administrative procedures. Not for a lack of trying, as the country has seen significant progress in its transition to greener energy sources. In 2023, its renewable electricity capacity saw an impressive increase of 160% compared to the previous year, largely attributable to hydropower.
Although hydropower represents the lion’s share of renewable energy production, many recent investments are yet to bear fruit. The country primarily relies on burning dirty lignite for about 50% of its total electricity generation, with the Bitola coal-fired power plant emitting a continuous plume of thick smoke and contributing to an escalating health crisis among local residents.
“The case of the local thermal power plant, REK Bitola, is an example where we could join forces to find a solution that would facilitate the transition from coal to more environmentally friendly sources and technologies,” the chief executive of NLB’s Macedonia branch, Branko Greganović, said, pointing to NLB bank’s investments into sustainable, low-carbon initiatives—termed ‘green financing’—which reached record levels last year.

There’s a growing trend among financial institutions to support businesses committed toward sustainability. “When a company seeks a loan from a bank, its operations undergo a detailed review,” continued Marija Dukovska Pavlovska, top executive and board member at Makstil AD, a Macedonian steel manufacturer. “The approval of their loan, as well as the conditions attached to it, hinge on their business practices.” The criteria for these often revolves around the ESG (Environmental, Social, and Governance) criteria a company adheres to, encompassing not only the company but the entirety of its supply chain.
With the ongoing rise in global temperatures, risks associated with elevated water levels and severe weather phenomena are intensifying beyond previous forecasts. Following a year marked by unparalleled flooding in Slovenia, The Triglav Group, a foremost insurer, was compelled to allocate a record-breaking sum, estimated in the range of EUR 150-200 million. “Should North Macedonia face significant flooding, the situation could become problematic, given that the country’s water management practices are less than ideal,” Jordanov pointed out, noting the vital role of insurance companies in merging business with climate data to bolster resilience throughout a company’s supply chain.
Geopolitics rears its head
While the need for governments and businesses to engage in climate change mitigation and adaptation is increasingly evident, Andrej Kariš, regional manager for the Intereuropa Group in Kosovo and North Macedonia, contends that businesses in the area typically incorporate climate risk into their financial planning. They now confront an additional challenge: inflation, driven by rising costs in energy, raw materials, and logistics services.
Additionally, disruptions in Red Sea shipping and the absence of a near-term solution are straining the already fragile manufacturing and global trade sectors, and potentially igniting new inflationary pressures.
Regionally, logistical challenges are compounded by unstable politics and inadequate infrastructure. Greganović is certain that without increased investment, the problems will only be exacerbated in the future. Presently, Western Balkan countries receive significantly less EU funding per capita compared to poorer EU member states. Moreover, the complex and sluggish procedures of Brussels make it difficult for recipient governments to fully leverage the available funds.
Jordanov argues that an open market and level playing field are essential for solidifying growth. And while North Macedonia stands to gain from the European trend towards ‘nearshoring’—the EU ambition to foster the development of strategic industries closer to home—, negative demographic trends could limit inward investment, with an increasing number of Macedonians leaving the country.
The 2021 census revealed a 9% drop in the North Macedonia’s population over the last twenty years. Young Macedonians, in particular, are moving abroad in search of better job opportunities and higher salaries.
In a warning to those in attendance, Marija Pavlovska stressed the challenges weren’t confined to North Macedonia but affected the entire region. “When are we going to start discussing this and looking for solutions,” she asked, urging a call to action. “It’s a matter of well-being, quality of life, access to health and social services. We need to identify solutions,” she added, as the “failure to do so could have dire consequences.”
THE ADRIATIC
This Institute for Strategic Solutions also held its sister event in Ljubljana at the beginning of the year.
Dogstar, a band beyond Keanu
editor
Andraž Tavčar
JOURNALIST AT THE ADRIATIC
Learning that the lead actor from films like Point Break and The Matrix also slaps bass in a band called Dogstar came as a surprise for me. The sort that at least merrited a bemused exhale through the nose and a quick Google search as I paused my search for upcoming events to include in our newsletter. What was meant to be a brief overture became a week spent marinating in the band’s discography – the soundtrack to my daily grind and nightly unwinding – as I immersed myself in the vibe.
Before long, I began to elucidate my friends as to what I referred to as ‘Keanu Reeves’ band’. “Do you like Keanu Reeves?” I’d ask. “Most recognise him for his roles on the big screen, but there’s this whole other facet to him – a grunge layer revealed through his band, reminiscent of the post-Nirvana scene and offshoots like Foo Fighters. At first, their music struck me as slightly out of time, as if a band from the ’70s somehow got stranded in the ’90s Seattle music era. It’s fascinating really. The ’70s heralded a zenith in rock history, marked by its raw, undiluted energy, something the ’90s seemed to chase after, albeit warped by cynicism and irony.”
Inexplicably, they veer into the bathroom stall, leaving me humming “I want to live in America” alone by the urinals, a personal favourite. I’d lose myself in visions of smoke-filled, dimly lit dens, populated with disheveled youths in flannel and ripped denim, nursing soon-to-be ripped bongs in their laps while Led Zeppelin plays and General Schwarzkopf lauds U.S. air superiority in Iraq on a flickering TV screen. “I want to be alone and free,” the lyrics echo, bouncing off the restroom’s tiled walls with an acoustic quality found only in the grimiest of Ljubljana’s diver bars. In other words, perfect.
There’s something to be said about the rise of grunge at the Cold War’s denoument. Its deep cynicism and rejection of consumerism cut charply through Fukuyama’s professed “end of history” and Mearsheimer’s “unipolar moment”. Concepts, once heavy with meaning, now cheapened by their overuse and evoked only for the sake of depth and academic rigour – remember, I was still humming in the bathroom at that point. Free markets and democracy were hailed triumphant, even as the American dream was marred by the detritus of heroin, poverty and racial strife. Grunge didn’t offer remedies; it mirrored a generation too deep in the fog to even care. “I want to be alone and free,” was a lament for the times.
Art, in its myriad forms, is a chameleon of expression – it harbors the ability to morph and reveal itself in layers. Whether it’s a well-loved novel or a song that sticks, engaging with it is as much an exploration into our own consciousness as it is into the mind of the artist. Fortunately, both extend beyond the scope of this article, but I think I can venture to at least surmise the latter and answer the more obvious question, dear reader, that’s been stuck in your head since you saw the title: Why is Keanu Reeves in a band named Dogstar and are they any good?
It’s not uncommon for movie stars to take on passion projects and veer into music, though they often amount to little more than vanity projects, with sheepish audiences of fans bobbing their heads politely to songs lacking heart. Bruce Willis’ brief stint as a jazz musician after playing a blues singer, comes to mind. Yet Keanu, with stark honesty, acknowledged his place in Dogstar, and the modesty with which he views their craft. “We’re terrible.”
Before they were known as Dogstar, the band’s story began with a chance encounter in a Gelson’s supermarket in 1991. There, Toronto-born Keanu, spotting a man in a Detroit Red Wings jersey – Robert Mailhouse, known for his role in the soap Days of Our Lives as police officer Brian Scofield – struck up a conversation about hockey, and the two soon found their shared passion for music. Keanu on bass, Robert on drums, the pair added a third – singer and guitarist Greg Miller.
Poring over videos of the band’s early performances and a cursory glance at their Wikipedia page, Keanu doesn’t at any point parade as actor/musician. He doesn’t seem to have the restless urge of most creatives, that drives them to do it all or die by the time they’re 27. Moreover, on stage, he’s off to the side, head down, foot tapping and keeping time. He’s Keanu Reeves, but on there, just another bass player.
Finding something that teeters on the edge of the genuine can be a daunting task in California, especially among actors. Starting a band off a chance encounter with a guy, just because you’re both into hockey, is as real as it gets. The band crystallizes the addagge of the now-defunct TikTok precursor, Vine, of “guys being dudes” – for example, men becoming blood brothers with the first person they sat next to during induction week of university. Being part of Dogstar offers Keanu a respite, a chance to unwind and indulge in what he loves, surrounded by a tight-knit circle of friends, far from the glare of entertainment journalists’ sycophantic, artificial grins.
Despite his widespread appeal and a certain fondness from the press – earning him accolades as “the nicest human being” – fame brings with it its own set of pressures, setting a bar of expectations that accompanies his every move.
Ironically, Dogstar’s fame hinges on Keanu, despite their obscure beginnings. They waver between names like Small Faecal Matter and BSF – shorthand for either Big Fucking Sound or Bull Fucking Shit. “I had long ceased to be interested in her contortions; except for the part of me that was in her I was as cool as a cucumber and remote as the Dog Star,” reads the line from Henry Miller’s book Sexus that inspired the more palatable name for their live performances.
Shows soon sell out and lead singer Miller departs, replaced by Bret Domrose. Dogstar tours the U.S. and Asia, opening for legends like David Bowie and Bon Jovi in ’95 in Australia and New Zealand. They debut with the EP Quattro Formaggi, then release Our Little Visionary, available only in Japan.
Balancing Keanu’s acting career, Dogstar released Happy Ending in 1999. Their final show was in 2002 in Japan, leading to an unofficial hiatus. Despite not formally pausing or producing new music for two decades, they occasionally played small venues.
The band made a comeback alongside the release of Matrix Resurrections in 2021, and, like all good things, it started with breakfast. “There was a premiere for Matrix 4 in San Francisco, and the next morning we had breakfast,” said Keanu in an interview for Entertainment Weekly. “That was the initial spark.” Dogstar returned to a major stage at the BottleRock Napa Valley Festival in May of last year. Their latest album, Somewhere Between the Power Lines and Palm Trees, was released in October, with performances at INMusic Festival in Zagreb and Arsenal fest in Kragujevac planned for June of this year.
To answer the question of whether they’re easy on the ears, it’s best to ignore Keanu’s remarks. Artists are often their own harshest critics, and Dogstar’s history of headlining shows alongside icons like Bowie and Bon Jovi suggests they’re far from lacking in talent. Indeed, Keanu’s celebrity alone wouldn’t have sufficed to cover for any musical shortcomings. Moreover, my willingness to listen to their music for a week straight implies I’m not engaging in self-torture — I’d like to think I’m still too young for that.
Dogstar demonstrated a versatile range. They can shift from anthem-like rock songs filled with emotive guitar solos to quieter, narrative-driven tracks. This duality in their music allows them to navigate seamlessly from lively indie surf rock, characterized by jangling guitars, to more elaborate pieces tinged with the depth of progressive rock and grunge.
Amid Anticipated Economic Rebound, NLB Funds Eye Growth in Asia
editor
Andraž Tavčar
JOURNALIST AT THE ADRIATIC
In a year that took the stock market to unprecedented heights, NLB Funds, Slovenia’s premier asset manager, has positioned itself for a promising outlook. Holding a commanding 40% share of the market, NLB Funds reported a significant inflow of €171 million last year, capturing over half of the total across all Slovenian asset managers.
With inflation and economic growth expected to moderate in the first half of the year, there’s an anticipation of a more accommodating monetary policy from both the U.S. Federal Reserve and European Central Bank—contributing to a diminishing fear of recession, with forecasts suggesting that unemployment and inflation rates in 2024 will dip below the figures registered at the end of 2023.
Rok Potočnik, NLB Funds’ senior asset manager, shared an optimistic view on the investment environment. “We’re feeling positive about the prospects for both asset classes this year, though we’re slightly more bullish on stocks than bonds,” he noted. “But, we’re keeping our expectations for the stock market in check, not expecting to see the same high returns we saw last year.”
The firm is proceeding with caution as it maintains a neutral approach in its engagement in both American and European markets. Even with the U.S. economy rebounding in 2023, it continues to be wary of the high valuations of American stocks. Likewise in the EU, influenced by the continent’s proximity to the war in Ukraine and mounting tensions in the Middle East. Huthi strikes on international trade in the Red Sea have led to considerable interruptions in shipping and a spike in expenses, with freight rates between Asia and Europe seeing a more than twofold increase.
Despite identifying some potentially lucrative valuations in Europe—particularly within the luxury goods sector and among defense companies—the complex risk environment and a more guarded economic forecast for the region have led NLB Funds to maintain moderate exposure to European markets.
Asia presents a mixed picture. China, once a favorite for international investors, has seen its attractiveness wane amidst the lifting of COVID restrictions that fell short of expectations, an unfolding property crisis, and heightened tensions with the U.S. over technology imports. The Biden administration has maintained the trade tariffs introduced by former President Trump, who initiated a trade war with Beijing in 2018. Under Biden’s presidency, the U.S. has tightened restrictions on China’s access to advanced American technologies, curbed investments in Chinese sectors deemed strategically sensitive, and expanded sanctions against major Chinese corporations.

Western-aligned countries stand to gain in the region, with India emerging as a significant investment destination, likened by Potočnik to China’s position at the turn of the century. While the IMF projects global growth to linger around 3%, the Indian economy is booming. Delhi projects a 7.3% growth rate for the fiscal year ending in March—the highest among G20 nations—and economists are optimistic about the country maintaining a growth rate of 6% or higher over the decade.
“Japan merits attention as well,” he adds, “as it appears to be on a trajectory of mature economic expansion and moderate inflation after years of sluggish growth and minimal inflation.” The country’s export-driven economy gains from a depreciating yen, which has developed a symbiotic relationship with the Nikkei 225. The benchmark index reached a peak on Tuesday, climbing 2.9% and briefly surpassing 38,000—a level last witnessed before the onset of Japan’s economic stagnation in the 90s.
The Artistic Legacy of the Sarajevo Olympics
editor

As we mark four decades since the 1984 Olympics in Sarajevo, it’s a time not only to reminisce about the organisational feats and athletic achievements of the winter games but also to celebrate an extraordinary effort that added a cultural and artistic dimension to this global festivity. Spearheaded by Lazo Vujić and his wife Živa Škodlar Vujić, owners of the Visconti Fine Art gallery in Ljubljana, the Sarajevo Olympics Art Project brought together 18 renowned artists from around the world to create works that encapsulated the spirit of the games.
Maja Dragović
“The idea originated from the graphics portfolio developed for the Munich Olympics in 1972,” recalls Lazo, tracing back to the project’s inception. “At that time I had galleries in Milan and Vienna. One day at home, I accidentally watched the jubilant celebration of Sarajevo winning the Olympics on television which sparked the inspiration. I turned to Živa and said, ‘I’ll go to Sarajevo to offer the Art project.’ And so, it began.”
Despite the Sarajevo Olympics Committee lacking the financial means to support the project, their endorsement provided a crucial boost. “Politicians recognised the potential of culture in promoting our country,” emphasizes Lazo.
But embarking on this venture proved financially daunting, as the Vujić funded the project independently. “Living in a communist country, with Živa based in Ljubljana and myself seeking opportunities globally, securing partners was imperative,” explains Lazo. Živa’s invaluable expertise as an art historian and curator of the International Graphic Biennial proved instrumental in navigating the artistic landscape.
The project commenced in autumn 1982, with less than a year to finalise everything before the Olympics. “Promoting the project before the games was crucial,” emphasizes Lazo. “We strategically utilised museum exhibitions, television, and other mediums to showcase the artistic creations and the Olympic spirit.”
Strong connections
Establishing connections with artists like Henry Moore and Andy Warhol was pivotal. “Moore’s endorsement propelled the project forward,” Lazo recalls. “When he heard it was for Yugoslavia, he immediately said ‘I’m in!’ He didn’t ask anything.”

Živa adds that coming from Yugoslavia at that time was an advantage, helping to open doors: “Yugoslavia meant something then. We were some kind of exotic enigma.”
After meeting Moore in London, they flew to New York to meet Andy Warhol. “When he received me, his business manager Frederick Hughes was with him,” Lazo recalls. “Warhol was walking in front of me and asked, ‘Who else do you have in the project?’ I told him ‘I’ve just been with Moore two days ago.’ He then said, ’If Moore’s in, I am in, too.’ And that was it. Then he just asked me ‘When does the project need to be finished?’ adding straight away: ‘I know, yesterday!’”
Challenges abounded, from organisational logistics to financial strains incurred through extensive travel. Yet, the culmination was a portfolio boasting original prints from esteemed artists, each imbued with the essence of the Olympics: Piero Dorazio, Jean-Michel Folon, Emilio Greco, Gottfried Helnwein, Howard Hodgkin, Hwang Kyu-Baik, Jiri Kolar, Henry Moore, Friedensreich Hundertwasser, Dzevad Hozo, Mimmo Paladino, Michelangelo Pistoletto, David Hockney, James Rosenquist, Giuseppe Santomaso, Gabrijel Stupica, Cy Twombly, and Andy Warhol.
Three other artists – Milton Glaser, a popular graphic designer at the time who created the I Love New York logo; Yozo Hamaguchi from Japan; and Francesco Clemente from Italy – provided motifs which were featured as posters, printed in limited series.
Cherished memories
Reflecting on cherished memories, the couple recounts moments spent with Henry Moore and the vibrant New York art scene.
“The most beautiful memories are the times we spent with Henry Moore. We were guests at his estate outside London several times, afternoon teas and conversation at his home were charming,” Živa recalls.
Lazo further reminisces: “In New York at that time, there was always a party somewhere. Once, James Rosenquist was celebrating his birthday, and the entire art world was there. I’m at the airport due to fly to California, and he says to me ‘you’ll regret it’ and then lets me hear a jazz band play in the background. I stayed, of course!”

It was Robert Rauschenberg who introduced them to Rosenquist. “Rauschenberg was not only kind as a person but extremely welcoming,” says Živa, adding, “Rauschenberg’s warmth and Rosenquist’s joviality remain etched in our memories.”
The Sarajevo Olympics Art Project stands as a testament to the transformative power of art, uniting nations in a celebration of creativity and athleticism. Amidst the echoes of history, it remains a beacon of cultural splendour and artistic legacy.
Some of the original prints from the Sarajevo Olympics portfolio are exhibited at the Visconti Fine Art gallery in Ljubljana. They are also available to purchase – for more information visit www.viscontifineart.com
Navigating the Logistics Horizon
editor
In the ever-shifting landscape of business, the recent transformations in the logistics services market demand a swift and agile response. InterEuropa not only recognizes this imperative but embraces it, committing to customise services and processes in sync with clients' demands and the wider market trends.
The logistics giant’s operational flexibility enables them to dynamically adjust transport capacities, seamlessly adapting to the ebb and flow of cargo structures.
A distinctive feature setting InterEuropa apart lies in their proactive approach to the optimisation of logistics processes. With a capable development team in tow, they collaboratively design bespoke business scenarios and models, seamlessly integrating them into their information system. The adept utilization of electronic data interchange not only streamlines procurement and sales supply chains but also positions InterEuropa as a seasoned provider of comprehensive logistics services.

As a testament to their forward-thinking ethos, InterEuropa is pioneering a green transition within the logistics realm. Recognizing the imperative of a low-carbon economy, they channel efforts into reducing environmental footprints, curbing greenhouse gas emissions, and aligning with stringent energy laws and European environmental directives. This commitment extends to their global logistics services, meticulously planning and coordinating resources and services from origin to consumption.
THE ADRIATIC
This article was originally published in The Adriatic Journal: Strategic Foresight 2024
If you want a copy, please contact us at info@adriaticjournal.com.
Greenovated transition: Slovenia's sustainable shift
editor
Špela Bizjak & Jan Tomše
JOURNALISTS AT THE ADRIATIC
In this exclusive interview with the Adriatic, Matevž Frangež, State Secretary at the Ministry of Economy, Tourism, and Sport in Slovenia, unveils the country's strategic vision for the future. Focused on the ambitious initiative Greenovated in Slovenia, Frangež discusses Slovenia's commitment to decarbonisation, the cultivation of new industries, and its appeal to high-tech companies. Highlighting the pivotal role of innovation and sustainability, he offers a glimpse into the nation's transformative journey towards a greener and economically vibrant future. He also reinforces Slovenia's dedication to economic integration in the Adriatic region and points to its potential as a European hub for strategic green technologies.
What is your assessment of the current economic climate, globally and in the markets that are relevant and important for Slovenian exporters in the Adriatic region?
It is obvious that we have entered a period of the greatest economic changes in history. These changes are driven by a variety of interconnected shifts – climatic, technological, geostrategic, social. In light of this, it becomes imperative for economies, including Slovenia, to adapt to the unfolding dynamics of the new era.
How do you think this can be done?
The changes we are talking about need certain adjustments in several areas. On the one hand, we must reduce the carbon and energy intensity of our industries. On the other hand, Slovenia’s strategic focus is to rapidly increase its added value. All this aligns with the rise of new technologies, with artificial intelligence being one of the most important drivers of this restructuring. It’s basically a mix of changes affecting all industries.
Our common consideration is how to design an economic policy geared towards positioning Slovenia among the victors of this time. These big changes determine exactly that – emerging winners and unfortunate losers.
Slovenia: innovative developer and trendsetter
“Guidelines for formulating economic policy are defined by various umbrella documents, such as the Slovenian Industrial Strategy. It holds true that some strategic foundations were not laid out at a time when the changes we are witnessing today were not as apparent. After the adoption of the Slovenian Industrial Strategy, events like the onset of the COVID-19 pandemic, the war in Ukraine, and consequently the energy crisis unfolded. During this time, Europe recognised the need for a sustainable, digital transition in the supply of energy, raw materials, and strategic technologies,” emphasises Matevž Frangež.
“At the ministry, we’ve prepared an action plan to increase competitiveness, which we can also call a strategic blueprint for economic transformation. This initiative prompts public debate Slovenia’s ambitions to become a new European hub for the development of advanced and green technologies,” he explains.
“So that we can change from being a competent and reliable supplier today to an innovative developer, especially in the field of technologies, which today largely represent a disruptive element in the global economy – on the one hand, green tech, on the other, advanced technologies such as is artificial intelligence, blockchain etc. Of course, also in several sectors where it appears that Slovenia can be a niche, very important and excellent player – biotech, a small but interesting space sector, food tech, etc.”
The Ministry has an ambitious project called Greenovated in Slovenia, focused on strengthening innovation, developing new solutions, and consequently increasing Slovenia’s broader visibility. What does Slovenia want to be recognised for?
Our initiatives are geared towards making our future greener with eco-friendly solutions – now a universal and ultimate requirement for every business. According to a PwC survey, 50% of Slovenian companies believe that climate change will not have a significant impact on their operations. This same percentage of companies very likely believes they will not be affected by the artificial intelligence. Looking at this pessimistically, it’s a sign that half of the Slovenian economy is not prepared for big changes. On a more positive note, half of the companies recognise how megatrends can influence their business.
The scale of these changes requires adjustments, even in individual industries. Slovenia is strongly embedded in European industrial networks, particularly in the automotive industry, which faces substantial upheavals amid the shift to electric mobility. Slovenia has the ambition to fortify its economy with a greater share of finished products, as well as domestic brands, which will be the outcome of Slovenian knowledge, innovation and design tailored to global demands.
Can you outline the measures under the consideration at the Ministry aimed at accelerating innovation?
In this era marked by a revival of industrial policy, investors are coming to Slovenia, they are interested in how our country, as an EU member, competes with its European counterparts in providing incentives for their investments. To bolster our competitiveness, we must create a predictable business environment. In today’s unpredictable global landscape, Slovenia, given its small size and significant international involvement, must ensure its internal systems are flexible enough to effectively react to the ongoing changes. The goal is to remain steadfast in turbulent times, always act as an internal, compact, and resilient entity, capable of flexibly adapting to external changes.
The three pillars of Slovenia's innovation outreach
1. DECARBONISATION AND UPGRADING THE EXISTING INDUSTRIES
“Slovenia’s economy is above average energy-intensive, primarily due to being a substantial supplier of materials such as aluminium, steel, glass, paper, plastic, and magnets. The production, processing, and customisation of these materials requires a lot of energy. Decarbonising these industries is undoubtedly one of the most important strategic tasks of our time,” warns Matevž Frangež.
“The ministry is preparing Repower EU measures totalling EUR 42m, combined with a mix of refundable resources, as well as a combination of non-refundable and refundable incentives for companies transitioning towards a reduced carbon footprint. What companies produce is equally important – whether they rely on using a lot of energy to produce conventional materials or demonstrate a capability to develop new materials for light weight design and construction. In Slovenia, we know how to produce effective solutions. Slovenia’s strategic ambition must be to move up the value ladder and strengthen its development competences.”
2. NEW PRODUCTS AND NEW INDUSTRIES
In this context, we focus on a very dynamic and diverse start-up ecosystem, uniquely organised into niche domains. “Slovenia has groundbreaking technologies in a number of fields, from mobility to bio tech – the latter stemming from the highly developed pharmaceutical industry. Worth to mention other examples as well, such as Juicy Marbles in the food tech sector and Elaphe in the automotive industry which introduced engines with a new, revolutionary architecture,” Frangež highlights.
“Ensuring good conditions and connectivity of the startup ecosystems imperative for the development of ground-breaking solutions. Additionally, Slovenia hosts Podim, one of the most important startup conferences in this part of Europe. At the same time, we have to make sure that we strengthen investments and financing, attracting venture capital, which is almost completely absent today,” says Frangež. He underscores another vital measure: “We want to activate more private capital through the Slovenian Enterprise Fund to make it easier for startups to obtain funds on the capital markets, which are too shallow in Slovenia. In this regard, our Ministry actively cooperates with the Ministry of Finance to design the capital market development strategy. Our goal is to develop a capital-driven mechanism that not only helps in the establishment and growth of companies but also propels them towards greater scalability. This, in turn, plants the seeds for emerging industries that will propel us into a new era.”
3. ENHANCING SLOVENIA'S APPEAL FOR HIGH TECH
In the pursuit of making Slovenia more appealing to global high-tech companies, the focus is on measures such as increasing research and development funding and implementing an ambitious stimulus policy. »If we want to become a European hub for innovation, we must enhance the appeal of our business environment for foreign labour, particularly high-tech personnel – here, above all, better net salaries for top talent. The intricate and time-consuming procedures in obtaining documentation for foreign workers also cannot be overlooked,. Challenges await us when it comes to placing investments in the space,” says Frangež. As he explains, it is a connected set of challenges that they want to tackle with the action plan, kickstarting the process with an initial phase involving public debate. “Slovenia lacks a social consensus on what we want to become as a country. Economic policy is the fundamental to our country, and we want to contribute to shaping this consensus through the implementation of the action plan,” he emphasizes.
Could we reflect on the recruitment of the high-tech personnel? These are talents that deliver substantial value through their expertise and groundbreaking solutions.
Through an extensive tax reform, our focus needs to be on alleviating the burden on labor while simultaneously adjusting property taxation upwards. Indeed, if the ambition is to position ourselves as a new European hub for innovation, maintaining low property taxation is not a magnet to help us achieve this objective. On the other hand, the magnet is a more competitive taxation of labour, recognising its pivotal role as a key development factor in generating innovation, knowledge, and creativity.
The action plan I’m referencing is precisely aimed at this coordination: to engage in concrete discussions about our economic vision and related measures. On one front, these measures are the responsibility of our ministry and we can feasibly realise them independently. On the other front, it involves measures that must be achieved through an interdepartmental approach if we want to realise the mentioned vision. But first we need to know where we want to go, so that we can then integrate the various measures into a whole that will effectively propel us towards achieving our goal.
Within the ministry, what solutions are being considered to speed up the processes for obtaining permits for highly qualified foreign individuals?
While our ministry isn’t primary responsible for key licensing functions, we are very interested in helping to make this important transition. We recognise talent is a pivotal driver for innovation and technological advancements – we proposed a re-evaluation of the “fast track” system for high-tech profiles some time ago. Under the proposed procedure, upon the submition of a complete application, a permit to work and reside in Slovenia is automatically issued. Subsequently, the administrative body would validate or revoke the permission based on whether the stipulated conditions are met. This would enable better access to global talent in the economy, while maintaining the necessary safeguards in the system. Notably, a comparable system was effectively implemented by Germany last year, which recognises, as we should all, that labour is one of the key inputs in the economy.
Countries compete with each other, so we need to strengthen our competitiveness. And Slovenia holds quite a few advantages: a safe community, fantastic conditions for a high quality of life with exceptional opportunities for contact with nature, sports, and recreation, as well as a solid education system, inclusive and accessible universities and globally competitive research institutes. Our strengths extend to an excellent location, beautiful natural landscape, not to mention that we are a ‘wine and culinary superpower’. This network of advantages is crucial to position ourselves as a green destination for life and work. To this we must add friendly, fast procedures and implement a tax reform that will alleviate the burden on labour.
How would you evaluate the position and role of Slovenia in the Adriatic region?
Undoubtedly, Slovenia’s path serves as an example for many in the Adriatic region. As a country, we have largely successfully navigated the processes and challenges facing the region. The goal is clear: prompt and complete integration of the Adriatic countries into full EU as soon as possible. I am confident that current geopolitical and geostrategic circumstances will make it possible.
In Bled we finally agreed on the timelines and concrete strategies to stimulate the region’s economic integration into the EU internal market. We now have a destination and a clear path. The objective is to increase investments and improve economic infrastructure in the Adriatic region, a goal Slovenia is committed to supporting, both politically, with a lot of knowledge and experience about opportunities in the EU internal market, and practically through the direct engagement of our companies, which are strongly present in the region, particularly in banking and insurance.
From a political-security and civil society point of view, how significant is the progress and inclusion of the Adriatic region in European integration?
The economies of the Adriatic region will do better, while the risk of potential conflicts will diminish. I truly believe in the potential of this region. I am convinced that we are significantly more complementary than competitive. As a society, we share a certain affinity with this area, embodying a blend of German precision and engineering brilliance on one side, and a Mediterranean laid back attitude on the other – a reminder that life extends beyond work.
To conclude: what are the key resources that Slovenian companies need for a green, sustainable transition?
I would emphasise the more efficient use of resources, including energy, and the creation of new value that will push us further up the supply chains. Take, for example, eco–design, which designs products to enable their recyclability and extended lifespan. At the highest level, we have the Net Zero Industrial Act serving as the European Union’s strategic framework that defines how to utilise and enforce strategically important technologies necessary for the green transition. There is a whole range of strategic technologies being developed in Slovenia, from wind technologies to carbon capture storage, heat pumps, and nuclear technology. Today, Europe is significantly dependent on China for many of these technologies. This underscores an opportunity for Slovenia to step in with its knowledge and products as a provider of innovative solutions.
THE ADRIATIC
This article was originally published in The Adriatic: Strategic Foresight 2024
If you want a copy, please contact us at info@isr.si.
Open Hearts and Closed Doors
editor
Andraž Tavčar
JOURNALIST AT THE ADRIATIC
A man with a concerned expression, wearing a sharp orange tie, speaks earnestly into the microphone. He is framed by the solemnity of a conference room ― his eyes bearing a weighty resolve, surveying the unseen, while those around him blur into the periphery of his focus.
If there was a scene that could capture North Macedonia’s travails with EU enlargement, it would be this. Agitated yet determined, the country has been caught in a state of perpetual limbo since it first began its rapproachment with the bloc at the turn of the century.
While President Michel has pledged that the EU will be prepared to take in new members by 2030, the future for the country’s EU aspirations appear more unpredictable than ever.
The Greek Oxi
Beginning in the late 90s, North Macedonia was the first of its former Yugoslav brothers to shake hands with the West, sealing a NATO membership action plan in ’99 and an EU stabilisation and association agreement in 2001.
By 2005, buoyed by its newfound status as a candidate country, North Macedonia appeared on the cusp of securing NATO membership. However, its ambitions hit a snag. At the 2008 NATO Summit in Bucharest, Greece exercised its veto power, citing concerns that Macedonia’s erstwhile name harbored latent territorial claims over its own northern province, also named Macedonia.
Then, when the European Commission gave the thumbs up for membership talks in 2009, the old Greek name game reared its head again.
In the ensuing decade, the political stage was dominated by a heady mix of politicking and populist fire, where the stubbornness of Nikola Gruevski’s nationalism in the country clashed head-on with a revolving door of equally unyielding Greek governments.
Despite the United Nations playing mediator, progress was sluggish, with few tangible results achieved over the years.
Turning point
The political landscape in Greece underwent a significant change with the rise of Alexis Tsipras, while North Macedonia experienced an equally notable political upheaval in 2017 that paved the way for Prime Minister Zoran Zaev. A year later, these two leaders would come together at Lake Prespa.
“The then socialist governments, with PM Zaev and Syriza’s Tsipras at the helm, managed to reach something of a diplomatic coup,” observes Matjaž Nemec, a Slovenian S&D MEP and member of the European Parliament’s Committee for Foreign Affairs. He points out that the Prespa Agreement – as it’s been dubbed – was pivotal for the Western Balkans. The landmark deal served as an example in untangling the web of issues that had long ensnared countries in the region, addressing concerns on both a bilateral and multilateral basis.
“Crucially, after the agreement was signed, Greece has consistently refrained from readdressing or contesting matters concerning North Macedonia’s name or its path to accession in any EU institutional fora.”
New hurdle
Post-2018, a new obstacle emerged due to disagreements over history with another EU member state, Bulgaria. Its insistence on addressing perceived “anti-Bulgarian ideology” in North Macedonia threatened to impede the latter’s EU accession process.
“As the Bulgarian issue gained more tangible prominence in 2019, and particularly in 2021, it brought into question the very agreement itself, rendering Bulgaria’s actions akin to a double-edged sword. This strategy effectively escalated a domestic political issue to a matter of international, or more precisely, European importance, elevating it to a dispute between two nations.”
Although some Bulgarians had previously expressed these concerns, their assertions were relatively minimal, and, for Nemec, it’s “incomprehensible” that Bulgaria hadn’t raised these issues at least concurrently when Greece had.
It nearly seemed like a replay of the Greek saga, but the EU had been roused by an outbreak of a war on its periphery. With Russia’s invasion of Ukraine, Western Europe’s appetite for enlargement revived as it sought to secure its values and its borders.
Incidentally, it would be the French under president Emmanuel Macron, that offered the Macedonians a way out of their stalemate. The so-called ‘French Proposal’ introduced a framework that mandated the country acknowledge the Bulgarian community within its own constitution, and the Sobranie, North Macedonia’s parliament, only tentatively voted it through, considering the minuscule census count of some three thousand citizens identifying as Bulgarian.
Charting the course
As a shadow rapporteur on the 2022 Commission report on North Macedonia, Nemec played a significant role in overseeing and contributing to the European Parliament’s evaluation of the country’s progress towards EU membership.
“We were faced with the fact that a report on a candidate state was not adopted, primarily because it had been overly influenced by a bilateral or Bulgarian agenda.”
He explained that as Skopje was trying to wrangle the necessary number of votes needed to change the country’s constitution, negotiations between the different political groups for a resolution on the report were underway in the European Parliament. The S&D, Greens and the Left political groups voiced their disagreement over the proposed text and the rapporteur, coming from the ranks of Renew, was subsequently forced to withdraw the progress report.
Nemec explained their strategy aimed to moderate the Bulgarian influence on the resolution. “We wanted to slightly temper or limit the process, believing that adopting a resolution aligned with the Bulgarian stance might have implications on the North Macedonian negotiations regarding the essential constitutional amendment.”
He candidly acknowledged the limitations of steering such an affair, admitting that “no one can control the entire process, not even the two or three biggest political groups.”
Despite the shared goal among North Macedonia’s political factions for EU membership, Nemec expressed concern over the diminishing allure of the European story ― not just in North Macedonia but across the EU, as well. He cautioned that should the EU fail to promptly respond to the aspirations of the Western Balkans, they could drift towards other regional or global influences. “These changes might result in alliances that are either misaligned or even anti-European.”
North Macedonia’s European path has been marred by tense relations with its neighbours and an EU that seemed stuck on the precipice at the end of history, overconfident of its economic relationship with Russia and the carrot it perpetually dangled over the Western Balkan states. The promise of membership always there but never quite in reach.
With all the country has sacrificed, North Macedonia stands out among the now enlarged pool of candidates. But the path ahead is muddied by a crucial election that could sidetrack the EU’s reemergent vim. EU-wide elections in June risk diverting focus to more inward-looking concerns as the far-right parties lead in the polls. Inflation, the energy crunch, escalating living costs, security crises, migration, healthcare, and climate change are poised to amplify public apprehensions, creating an ideal breeding ground for populist rhetoric.
The common advice to candidate countries by the EU is to “do your homework.” But if the school is in disarray, what’s the use?
THE ADRIATIC
This article was originally published in The Adriatic: Strategic Foresight 2024
If you want a copy, please contact us at info@isr.si.
Untamed Nature and the Regional Economy
editor
Jan Tomše
Extreme weather events, such as heavy rain, storms, and hail, have become more frequent in Slovenia and the region, with last year seeing record flood damage that led to significant losses for both individuals and businesses. The Triglav Group, a prominent insurer, had to pay out an unprecedented sum, estimated at EUR 150-200 million, primarily for flood damage. To tackle the new challenges, the insurance industry is developing new products and expanding existing index insurance options to cover climate-related risks like droughts and floods.
These weather events have not only impacted individuals, but business suffered significant losses, too. The Triglav Group, a leading insurer, has paid out unprecedented compensation sums in Slovenia and the region, especially for flood damage. The payouts, totalling an estimated EUR 150 and EUR 200 million, include damages from storm surges, hail storms and floods. Taking into account reinsurance protection, these payouts are estimated to have a negative impact on the Group’s operating results, in the range of EUR 40 to EUR 50 million. Despite the challenging environment, the insurer emphasises it maintains an adequate level of capitalisation and liquidity.
Data for the last 20 years shows that last year was the worst year on record for losses caused by nature’s events. The second worst was 2008, when insurers paid out EUR 95 million in natural catastrophe claims, of which hail accounted for EUR 47 million. Recent events have caused a surge in insurance requests but the insurer notes this is to be expected: the awareness of the importance of insurance protection increases with the occurrence of extreme weather events, but tends to diminish with the passage of time.
Despite the current rise in interest for coverage, the Group estimates around one third of real estate owned by private individuals in Slovenia is still uninsured against any peril. This proportion is even higher for businesses, as only a few percent have adequate insurance against flood damage. The insurer says there are viable options for businesses to mitigate risks, including extending fire insurance to cover floods or opt for combined insurance. The third option is to cover costs or profits in the event of loss of income due to business interruption. This is the loss that occurs if the business is unable to operate.
“This, together with the increasing frequency and severity of such events, will put pressure on reinsurance prices, increase the risk of property insurance portfolios and intensify the need for insurers to raise additional capital. Ensuring adequate protection will continue to be of key importance in the future, taking into account changes and restrictions on reinsurance conditions,” Triglav Group says.

Lack of awareness
While extreme weather events have recently dominated headlines, earthquakes receive less attention, despite Slovenia and the region being located in a very active seismic zone. The area has been hit by major earthquakes in the past including the 1976 earthquake with epicentre in Friuli, Italy, and earthquakes in the Posočje region in 1998 and 2004. In 2015, an earthquake shook the grounds in the Gorjanci near the border with Croatia. The end of December 2020 saw a magnitude 6 earthquake striking Petrinja in Croatia, resulting in seven fatalities, highlighting the persistent seismic threat in the region.
Two years ago, seismologists and geologists from the Slovenian Environmental Agency and the Geological Survey of Slovenia have produced an updated earthquake hazard map for Slovenia. The map reveals that the areas with highest seismic risk are in western Slovenia and in a belt that runs across the whole of Slovenia from northwest to southeast, particularly west of Bovec near the Italian border and the Dinaric fault system in western Slovenia. While Bovec and Brežice are identified as seismically most active areas, northeast of Slovenia and Primorska region are at the lowest risk.
Despite the seismic threat, the Triglav Group says there is still a significant lack of public awareness about the risk. This is quite perplexing considering that catastrophic damage poses a significant threat to an individual’s financial security, given that property is often a person’s most valuable asset. The insurer notes that the demand for earthquake cover varies according to the type of insurance taken out. They estimate around one third of those with any property insurance opt for earthquake coverage.
Similar to floods, demand for earthquake insurance sees temporary spikes after hazardous earthquakes in Slovenia’s vicinity, such as those in Croatia, Turkey, and even in Syria. But the increased awareness gradually wanes over time. Earthquake insurance is typically included in the home or business property coverage, with premiums depending on the earthquake zone, the age of the building and the agreed deductibles.
For example, the earthquake insurance premium for an apartment building in Ljubljana built after 1965 would be one third lower than for a similar building built before 1965.
New insurance products
The insurance industry itself is also in the process of adapting to climate change. Insurance companies are not only developing new products but also increasing the representation of existing index insurance products for drought, floods and other cli- mate risks. They are also expanding their portfolio of insurance products in the area of sustainable mobility and offering effective risk protection for companies involved in the exploitation of renewable energy sources, such as solar power plants, wind farms and others. In addition, the Triglav Group is adjusting its approach to insuring coal mines and thermal power plants, taking into account national strategies for phasing out coal and transitioning to a carbon-neutral economy.
“By investing in sustainable companies, we are actively contributing to environmentally sustainable and socially responsible developments, as societal expectations and regulatory requirements in this area will be even higher in the future. This is all part of our commitment to sustainable investing, which paves the way for a greener, fairer and more inclusive society,” the Group concludes.
Triglav Group advises: How to choose the right insurance?
Triglav Group - Forward, sustainably
“We want to play a leading role in integrating global sustainability best practices into our business in the Adriatic region and are able to identify sustainability opportunities and risks. We have formulated our sustainability (ESG) goals for 2025 in four key areas: insurance and asset management, Triglav Group’s business processes, responsible stakeholder relations and effective corporate governance,” the insurance company says.
The Group’s activities include continuous efforts to raise aware- ness among the public, partners and other stakeholders on global development challenges and sustainable behaviour in everyday life. This commitment to the community is manifested through preventive investments and prevention programmes – an important social component of the insurance industry’s sustainable impact – and a number of projects in the areas of transport, fire safety, health, agriculture and education. These initiatives are primarily designed to benefit the most vulnerable groups of people and natural environments.
THE ADRIATIC
This article was prepared in cooperation with Triglav Group d.d.,originally published in The Adriatic Journal: Strategic Foresight 2024
If you want a copy, please contact us at info@isr.si